for a non-generic, simple solution to your exact problem:

homes.sort(
   function(a, b) {          
      if (a.city === b.city) {
         // Price is only important when cities are the same
         return b.price - a.price;
      }
      return a.city > b.city ? 1 : -1;
   });

You can assign a number to each case, with the cases that should come first having lower numbers and then subtract the two when comparing.

function sortBy() {
  const getOrder = ({favorites})=>favorites?.length === 1 ? 0 : !favorites?.length ? 1 : 2;
  const cmp = (a, b) => (getOrder(a) - getOrder(b));
  return list => list.sort(cmp);
}

const data = [{ rentalName: "Foo", favorites:[{}, {}, {}] }, { rentalName: "Bar", favorites:[{}] }, { rentalName: "Baz", favoriteslikes:[{}] }, { Name: "Plugh", favorites:[] }];

const sortByLikes = sortBy();

console.log(sortByLikes(data));

You can also create a dynamic sort function that sorts objects by their value that you pass:

function dynamicSort(property) {
    var sortOrder = 1;
    if(property[0] === "-") {
        sortOrder = -1;
        property = property.substr(1);
    }
    return function (a,b) {
        /* next line works with strings and numbers, 
         * and you may want to customize it to your needs
         */
        var result = (a[property] < b[property]) ? -1 : (a[property] > b[property]) ? 1 : 0;
        return result * sortOrder;
    }
}

So you can have an array of objects like this:

var People = [
    {Name: "Name", Surname: "Surname"},
    {Name:"AAA", Surname:"ZZZ"},
    {Name: "Name", Surname: "AAA"}
];

...and it will work when you do:

People.sort(dynamicSort("Name"));
People.sort(dynamicSort("Surname"));
People.sort(dynamicSort("-Surname"));

Actually this already answers the question. Below part is written because many people contacted me, complaining that it doesn't work with multiple parameters.

Multiple Parameters

You can use the function below to generate sort functions with multiple sort parameters.

function dynamicSortMultiple() {
    /*
     * save the arguments object as it will be overwritten
     * note that arguments object is an array-like object
     * consisting of the names of the properties to sort by
     */
    var props = arguments;
    return function (obj1, obj2) {
        var i = 0, result = 0, numberOfProperties = props.length;
        /* try getting a different result from 0 (equal)
         * as long as we have extra properties to compare
         */
        while(result === 0 && i < numberOfProperties) {
            result = dynamicSort(props[i])(obj1, obj2);
            i++;
        }
        return result;
    }
}

Which would enable you to do something like this:

People.sort(dynamicSortMultiple("Name", "-Surname"));

Subclassing Array

For the lucky among us who can use ES6, which allows extending the native objects:

class MyArray extends Array {
    sortBy(...args) {
        return this.sort(dynamicSortMultiple(...args));
    }
}

That would enable this:

MyArray.from(People).sortBy("Name", "-Surname");

Here's a more flexible version, which allows you to create reusable sort functions, and sort by any field.

const sort_by = (field, reverse, primer) => {

  const key = primer ?
    function(x) {
      return primer(x[field])
    } :
    function(x) {
      return x[field]
    };

  reverse = !reverse ? 1 : -1;

  return function(a, b) {
    return a = key(a), b = key(b), reverse * ((a > b) - (b > a));
  }
}


//Now you can sort by any field at will...

const homes=[{h_id:"3",city:"Dallas",state:"TX",zip:"75201",price:"162500"},{h_id:"4",city:"Bevery Hills",state:"CA",zip:"90210",price:"319250"},{h_id:"5",city:"New York",state:"NY",zip:"00010",price:"962500"}];

// Sort by price high to low
console.log(homes.sort(sort_by('price', true, parseInt)));

// Sort by city, case-insensitive, A-Z
console.log(homes.sort(sort_by('city', false, (a) =>  a.toUpperCase()
)));